Insiders at McDonald’s and BNY Mellon Discard Shares, Interim CEO of Surgical Device Company Buys $4 Million Worth of Stock, and More

Keeping tabs on insider trading behavior represents a crucial part of some investors’ security analysis process. After all, past research shows that corporate insiders make more profit-generating trades than the average investor, which clearly represents one of the main reasons retail investors and even hedge fund managers have been keeping track of insider trading metrics for years.

However, any individual tracking insider trading activity should be aware that insider selling does not necessarily represent a bearish or negative signal. Insider selling should be interpreted with high caution regardless of the size of each sale. At the end of the day, corporate insiders may cash out their holdings for a wide range of reasons, which could include cash needs, tax payments or other reasons unlinked to their companies’ current fundamentals or future prospects. Investors believing in the information power of insider trading metrics should not act or trade on each detected inside sale instantly; investors should conduct a more in-depth analysis of the companies witnessing insider selling to find out whether the insider selling is indeed cause for concern. Having said that, the following article will lay out a list of noteworthy insider transactions reported with the SEC this Wednesday.

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Interim CEO of Battered Surgical Device Company Buys $4 Million Worth of Shares

Let’s begin our discussion by having a look at a voluminous insider purchase observed at Misonix Inc. (NASDAQ:MSON). Stavros George Vizirgianakis, Interim Chief Executive Officer and Interim President since early September 2016, snatched up 761,469 shares Tuesday at a price tag of $5.25 each. Following the $4 million-purchase, Mr. Vizirgianakis currently holds an ownership stake of 1.21 million shares.

This insider purchase was so huge that Misonix Inc. (NASDAQ:MSON) released a public statement regarding the transaction. As the Interim CEO said in the statement, “this investment indicates my belief that the future for Misonix is bright.” Misonix operates as a surgical device company that designs, manufactures, and markets therapeutic ultrasonic products for spine surgery, skull-based surgery, neurosurgery, wound and burn debridement, cosmetic surgery, laparoscopic surgery and other surgical applications. In mid-September, the company’s shares took a hit after the company announced that the filing of its Annual Report on Form 10-K for the fiscal year that ended June 30 would be delayed due to an ongoing investigation by the company’s Audit Committee related to deficiencies in its internal control. The medical device maker voluntarily told U.S. authorities about potential U.S. foreign-bribery violations by the company that distributes its products in China. The company’s shares have lost 37% of their value since the start of the year. Jim Simons’ Renaissance Technologies LLC was the owner of 171,000 shares of Misonix Inc. (NASDAQ:MSON) at the end of the second quarter.

The next two pages of this article will discuss several other noteworthy transactions reported with the SEC on Wednesday.

Board Member and CFO at Struggling Casual-Dining Chain Buy Shares

Two corporate insiders at BJ’s Restaurants Inc. (NASDAQ:BJRI) piled up some shares earlier this week. To start with, Gregory S. Levin, Chief Financial Officer, Executive Vice President and Secretary, bought 1,500 shares on Wednesday at a cost of $33.72 per share. This purchase lifted Mr. Levin’s ownership stake to 35,065 shares. Board member Noah A. Elbogen purchased three blocks of 5,000 shares each on Wednesday at prices ranging from $33.34 to $33.73 per share. Mr. Noah currently holds an aggregate of 46,271 shares following the recent purchase.

The aforementioned insider purchases come after the casual-dining chain known for pizza and beer released disappointing results for its fiscal 2016 third quarter that ended September 27. Interestingly enough, the man in charge of BJ’s Restaurants Inc. (NASDAQ:BJRI) blamed the the volatile U.S. presidential election, particularly the debates, for the disappointing results. “The tone of this year’s political season, regardless of where your allegiance may lie, has generated what some would call a nearly unprecedented level of negativity and doubt in the minds of everyday American citizens,” said CEO Greg Trojan on a recent conference call. “Overall, retail trends and the results of other businesses dependent on consumer discretionary spending confirm that during the quarter, many preferred to stay home versus going out,” pointed out the CEO. The casual-dining chain has seen its market capitalization fall by 22% since the beginning of the year. Ken Griffin’s Citadel Advisors LLC had around 383,000 shares of BJ’s Restaurants Inc. (NASDAQ:BJRI) in its portfolio at the end of the June quarter.

President of BDC Paying Double-Digit Dividend Yield Buys Shares Via Public Offering

One member of Gladstone Capital Corporation (NASDAQ:GLAD)’s executive team bought a block of shares this week. President Robert L. Marcotte purchased 25,000 shares on Tuesday at a price of $7.98 per share, a purchase that boosted his ownership to 321,950 shares. The block of shares was acquired in a public offering of 2 million shares, an offering that raised $15.1 million in net proceeds.

The business development company that invests in debt and equity securities of established private businesses in the United States intends to use the net proceeds from the offering to repay existing indebtedness, fund investments, as well as cover general corporate expenses. Gladstone Capital Corporation (NASDAQ:GLAD) is set to pay monthly cash distributions of $0.07 per share for November and December, with the monthly dividend payment yielding 10.69% annually. The BDC’s total investment income for the three months that ended June 30 was $9.84 million, marking a decrease of 0.9% year-over-year. The shares of the BDC are up 7% this year. Ken Griffin’s Citadel Advisors LLC sold out its 23,620-share stake in Gladstone Capital Corporation (NASDAQ:GLAD) during the second quarter.

The final page of this article discusses fresh insider selling witnessed at two giant companies.

Chairman Emeritus of Well-Known Fast-Food Chain Sells Shares

A well-informed insider at McDonald’s Corporation (NYSE:MCD) offloaded a sizeable block of shares this week. Andrew J. McKenna, who became Chairman Emeritus earlier this year after serving as the company’s Chairman for 12 years, discarded 30,000 shares on Monday at prices varying from $113.42 to $113.55 per share. Following the recent sale, Mr. McKenna currently holds an ownership stake of 72,514 shares.

Although the world’s biggest fast-food chain has managed to reverse a long slide in same-store sales, the company has not figured out how to get more customers into its restaurants just yet. According to internal company documents obtained by Bloomberg, McDonald’s Corporation (NYSE:MCD) is facing a fourth consecutive year of U.S. traffic declines. Earlier this month, analysts at UBS lowered their price target on the fast-food chain to $130 from $137, citing challenging industry trends. UBS analysts, who have a ‘Buy’ rating on McDonald’s shares, believe the ongoing efficiency efforts implemented by the well-known fast-food chain could drive upside in the foreseeable future. The shares of McDonald’s are 5% in the red thus far in 2016. Ken Fisher’s Fisher Asset Management reported owning 7,704 shares of McDonald’s Corporation (NYSE:MCD) through the latest round of 13Fs.

Insider Selling at the World’s Largest Custody Bank

Three different insiders at Bank of New York Mellon Corp (NYSE:BK) sold shares earlier this week, two of whom sold mostly freshly-exercised stock options. Hence, we will have a look at the insider selling unrelated to the exercise of stock options only. Mitchell Harris, Chief Executive Officer of Investment Management for BNY Mellon (which includes the company’s asset management and wealth management businesses), liquidated 28,779 shares on Monday at prices that fell between $43.52 and $43.59 per share. Following the sale, Mr. Harris currently owns an aggregate of 166,195 shares.

The insider selling comes after the world’s largest custody bank released better-than-anticipated earnings for the third quarter, as expenses dropped 1.4% year-over-year due to the stronger U.S dollar and lower software, equipment, legal, occupancy and business development costs. Bank of New York Mellon Corp (NYSE:BK)’s assets under management stood at $1.72 trillion at the end of the third quarter, an increase of 5.5% year-over-year and a 3.1%-increase sequentially. BNY Mellon’s shares have gained 5% since the start of the year. Ken Fisher’s Fisher Asset Management owns 9,715 shares of Bank of New York Mellon Corp (NYSE:BK) as of September 30.

Disclosure: None